by XIN Yuan

China's market and cyberspace regulators have issued new rules tightening oversight of how online platforms draft and enforce their operating policies, with a focus on curbing algorithm-driven price discrimination and practices that weaken consumer protections.

The rules, jointly released by the State Administration for Market Regulation and the Cyberspace Administration of China, govern how platforms set, revise and apply internal rulebooks affecting pricing, fees, algorithms and merchant conduct.

Platforms are barred from using data, algorithms or platform rules to charge different prices for the same goods or services under similar conditions — a practice commonly referred to in China as "big data discrimination". The framework also prohibits platforms from limiting consumer rights, shifting liability onto users, imposing unreasonable penalties on merchants, or unilaterally changing membership terms in ways that harm customers.

Under the rules, platforms must make operating policies public, solicit feedback before major changes and provide transition periods and appeal channels for affected merchants and consumers. They are also required to establish dispute-resolution mechanisms and specify standards for data security and personal information protection, including requirements on the protection of minors online.

Enforcement will be coordinated between market regulators and cyberspace authorities. The two agencies may summon platform executives, require explanations and order corrective measures where violations are identified. Platforms are encouraged to publish compliance reports or conduct third-party reviews of their rule-setting practices.

The move follows pricing rules issued in late 2025 that explicitly banned personalized pricing based on consumers' willingness or ability to pay without their knowledge. Regulators have repeatedly cited opaque algorithms, price discrimination and fake transactions as major sources of consumer complaints, signaling sustained scrutiny of platform conduct.

Legal experts say algorithm-driven price discrimination can distort competition and erode consumer trust, while the tighter framework is likely to raise compliance requirements for online platforms operating in China.